Investor Partnerships: Clean Energy and Climate Technologies

Key Features

UK registered SMEs can apply for grant funding alongside private investment from selected investor partners.

Programme:     Innovate UK

Award:     Funding to be confirmed

Opens: 2nd May 2025

Closes: 2nd Jul 2025

Overview

Innovate UK Growth Catalyst is an integrated package of funding and support, designed to help accelerate high-potential start-ups on their journey to becoming scale-ups and beyond.

For this first pilot, we are targeting late-stage start-ups from seed to Series A, the funding element will be through our proven Investor Partnerships model, with expert support available from our Innovate UK Business Growth Innovation and Growth Specialists, Innovate UK Business Connect and Catapults.

The next pilot in July will be for early-stage, pre-seed start-ups. For more information on Innovate UK Growth Catalyst, please visit: https://iuk-business-connect.org.uk/opportunities/innovate-uk-growth-catalyst-for-late-stage-startups/

Scope

The aim of this competition is to provide you with support for research and development and access to the capital investment you need to develop and commercialise your innovations.

Your proposal must have a clear route to market, a clear link to innovation and evidence that you can create a team to deliver your proposal.

You must be:

  • registered in the UK as an SME by the time the award is contracted
  • able to complete the aligned investment led by the investor partner needed to qualify for the award, through the issue of new shares or convertible debt

You must also demonstrate that if your project is funded, it will:

  • have significant market impact
  • be scalable
  • be attractive to equity investors

Clean Energy and Climate Technologies

This round will focus on technology and innovations that aim to deliver government commitment to clean energy for the UK and accelerating to net zero, helping the UK to prosper from the transition to net zero. This includes solutions and enabling technologies that make a significant contribution to mitigating climate emissions, across heat, power, mobility, manufacturing, materials, agriculture and food production systems.

Innovation and ideas can come from anyone and anywhere. We want to see investments unlocked for the diverse and extraordinary talent in the UK.

Innovate UK encourage innovation involving communities that are typically under-represented, including:

  • from regions that have historically accessed lower levels of investment (outside London, Oxford and Cambridge)
  • ethnic minority groups
  • women and other marginalised genders
  • people with disabilities
  • people with non-traditional education backgrounds

Portfolio approach

Innovate UK want to fund a variety of projects within Investor Partnerships. Where funding is limited, we may make a funding decision based on the project type and size, grant requested, business stage, location, and sector within the scope criteria. Innovate UK call this a portfolio approach.

Innovate UK will also take into account the impact of the grant in accelerating investment and the likelihood of the investment completing within a reasonable time.

Specific Themes

Your project must focus on technology and innovations that aim to deliver government commitment to clean energy for the UK and accelerating to net zero, helping the UK to prosper from the transition to net zero. This includes solutions and enabling technologies that make a significant contribution to mitigating climate emissions, across heat, power, mobility, manufacturing, materials, agriculture and food production systems.

Example areas of focus could include:

Clean Energy Solutions.

Innovations that are low cost, improve energy security and reduce emissions.

For example:

  • renewable energy technologies including offshore wind, hydrogen production, distribution and use, nuclear, and fusion
  • System flexibility and energy storage including chemical, mechanical, thermal, electrical and digital solutions to help balance supply and demand across a range of durations
  • carbon capture, utilisation and storage
  • Energy efficiency and electrified heating system solutions for homes and other buildings, including technology to provide live data supporting upgrades

Sustainable Mobility.

Technologies that reduce emissions across all forms of mobility.

Including:

  • electrification and alternative fuels
  • smart, automated, connected & efficient mobility
  • decarbonising freight & logistics, and the infrastructure to enable reducing emissions, including bidirectional charging

Sustainable Low-Carbon Materials and Manufacturing.

Innovations that to foster sustainable growth across industrial processes and supply chains.

Including:

  • energy efficiency
  • resource efficiency
  • circularity
  • process optimisation
  • fuel switching
  • carbon capture
  • hydrogen
  • translation and scaling of sustainable materials and the application of industrial biotechnology.

Sustainable Agriculture and Food Production Systems.

Novel low emission production systems.

Including:

  • alternative proteins from diverse sources (e.g. plant, algae, fungi, bacteria, aquatic plants)
  • precision and biomass fermentation,
  • cultivated meat and new production systems (insects, novel aquaculture).

Technologies which reduce emissions in agriculture.

Including:

  • precision & regenerative agriculture
  • soil health
  • low emission fertilisers
  • methane reduction technologies
  • controlled environment agriculture and electrification & alternative fuels in agriculture

This is an illustrative list. You must demonstrate how your project aligns to the scope in your application.

Innovate UK will fund feasibility projects, industrial research projects and experimental development projects, as defined in the guidance on categories of research.

Eligibility

The eligibility criteria will depend on your research category.

For feasibility studies projects:

  • your total project costs must be between £50,000 and £300,000
  • the project duration must be between 6 and 12 months

For industrial research projects:

  • your total project costs must be between £100,000 and £1 million
  • the project duration must be between 6 and 24 months

For experimental development projects:

  • your total project costs must be between £250,000 and £2 million
  • the project duration must be between 12 and 24 months

Projects must always start on the first of the month, even if this is a non-working day. You must not start your project until your Grant Offer Letter has been approved by Innovate UK. Any delays within Project Setup may mean we need to delay your project start date.

You must only include eligible project costs in your application. See our overview of eligible project costs. For specific guidance, see the eligibility section in this competition.

Your organisation

This competition is open to single applicants only. To apply your organisation must:

  • be a UK registered micro, small or medium sized business (SME)
  • carry out its project work in the UK
  • intend to exploit the results from or in the UK
  • be invited to apply by your investor partner after they have submitted an expression of interest to Innovate UK
  • have discussed and agreed your proposal with your investor partner before submitting your application

More information on the different types of organisation can be found in our Funding rules.

Subcontractors

Subcontractors are allowed in this competition.

Subcontractors can be from anywhere in the UK and you must select them through your usual procurement process.

You can use subcontractors from overseas but must make the case in your application as to why you cannot use subcontractors from the UK.

You must provide a detailed rationale, evidence of the potential UK contractors you approached and the reasons why they were unable to work with you. We will not accept a cheaper cost as a sufficient reason to use an overseas subcontractor.

All subcontractor costs must be justified and appropriate to the total eligible project costs

Number of applications

An SME can only submit one application into this round of the competition.

Sanctions

This competition will not fund you, or provide any financial benefit to any individual or entities directly or indirectly involved with you, which would expose Innovate UK or any direct or indirect beneficiary of funding from Innovate UK to UK Sanctions. For example, through any procurement, commercial, business development or supply chain activity with any entity as lead, partner or subcontractor related to these countries, administrations and terrorist groups.

Use of animals in research and innovation

Innovate UK expects and supports the provision and safeguarding of welfare standards for animals used in research and innovation, according to best practice and up to date guidance.

Any projects selected for funding which involve animals will be asked to provide additional information on welfare and ethical considerations, as well as compliance with any relevant legislation as part of the project start-up process. This information will be reviewed before an award is made.

You can use a previously submitted application to apply for this competition.

Exclusions

Innovate UK are not funding projects that are:

  • not carried out by SMEs
  • collaborative R&D projects
  • not part of a company’s growth plan
  • unable to prove there is potential for return on investment and growth
  • large capital infrastructure
  • not invited by a specified investor partner

Innovate UK cannot fund projects that are:

  • dependent on export performance, for example, giving a subsidy to a baker on the condition that it exports a certain quantity of bread to another country
  • dependent on domestic inputs usage, for example, giving a subsidy to a baker on the condition that it uses 50% UK flour in their product

Funding Costs

You will only receive grant funding from Innovate UK if you also receive a minimum level of aligned investment that has been led by your investor partner. The minimum level of investment will depend on the research level.

Innovate UK will decide which projects are eligible and in scope to receive grant funding. The decision will be based on the assessment of your application by independent assessors. Innovate UK will also take into account the impact of the grant in accelerating investment and the likelihood of the investment completing within a reasonable time.

If you are successful, you will receive grant funding to cover a proportion of the costs of your project. The project will only be allowed to commence once the agreed aligned investment has been confirmed.

Your business must have sufficient capital resources, including through investment from the investor partner and the grant funding, to enable you to meet all your project’s eligible costs.

All recipients must act commercially, and your funding request must not exceed the limits specified.

Feasibility studies and industrial research projects

For feasibility studies and industrial research projects, Innovate UK will fund:

  • up to 70% of eligible project costs for micro or small organisations
  • up to 60% for medium sized organisations

The aligned investment led by the investor partner must always be at least equal to the grant funding.

Experimental development projects

For experimental development projects Innovate UK will fund:

  • up to 45% of eligible project costs for micro or small organisations
  • up to 35% for medium sized organisations

The aligned investment led by the investor partner must always be at least twice as much as the grant funding.

Innovate UK may revoke our decision to provide funding without notice if government commitment for this initiative is withdrawn.

Interested in applying for this competition?

Book an appointment to speak to one of our advisors to discuss your eligibility to apply for this Grant Funding opportunity.